- Ethereum price has shown resilience as it quickly recovered from the recent crypto market crash.
- ETH has outperformed Bitcoin and has reached a three-year high on the ETH/BTC chart.
- A prominent crypto analyst suggested that investors are using Ethereum as a hedge.
Ethereum price has been standing out from other cryptocurrency assets, as Bitcoin and most altcoins have been struggling to recover from the recent losses. Although the second-largest cryptocurrency by market capitalization crashed to a low of $3,400 over the weekend, ETH is holding firmly against BTC, reaching a three-year high on the ETH/BTC chart.
Ethereum dwarfed losses against Bitcoin
Ethereum price has reached a three-year high on the ETH/BTC chart on December 5, reaching 0.857 BTC, the highest level seen since May 2018. Despite the market collapse on December 4, the layer 1 token recovered most of its losses, while Bitcoin and other altcoins are struggling to move higher.
ETH/BTC 12-hour chart
According to prominent crypto analyst Crypto Birb, “it seems that investors are taking ETH as a hedge here,” as Ethereum recovered quickly against BTC.
Lukas Enzerdorfer-Konrad, the chief product officer at Bitpanda stated that the ETH/BTC monthly close in November was the best one in almost four years and that the bulls could continue to have “some power left for an additional run.”
Ethereum price to face stiff hurdle at $4,300
Ethereum price managed to reclaim a critical support level at $4,000, suggesting that ETH has shown strength and appears ready to tag higher levels.
The first obstacle for Ethereum price appears to be at the 78.6% Fibonacci retracement level at $4,211. ETH will face a challenging hurdle at $4,323, where the 21, 50 and 100 twelve-hour Simple Moving Averages (SMAs) converge. If the token manages to slice above this level, the bulls may be incentivized to target the November 26 high at $4,551 next.
Bigger aspirations will target the all-time high at $4,868 and Ethereum price may be prepared for lift-off toward the 127.2% Fibonacci extension level at $5,762.
ETH/USDT 12-hour chart
However, investors should note that Ethereum price must stay above the psychological level at $4,000 for the bullish outlook to be validated.
The first line of defense for Ethereum price is at the October 28 low at $4,115, then at the November 22 low at $4,022. If selling pressure increases, ETH may fall toward the support trend line $3,914 before sliding lower to meet the 200 twelve-hour SMA at $3,865.